FNILX vs. VOO: Which Fund is Better?

Someone asks:

Hi all, has anyone compared FNILX (Fidelity) vs VOO (Vanguard) and found a reason not to purchase FNILX? Both follow S&P 500 but FNILX is newer and has zero expense ratio.

I’d have to start a Fidelity account to purchase it (or at least it’s not available through my Vanguard or TD accounts), but aside from starting a new account with a new firm, seems like a low risk/high reward scenario – aside from the fund being newer than VOO.

I know Fidelity and Vanguard are both equally trusted and are on par with each other. Just looking for any red flags. TIA!

FNILX vs. VOO: What Are the Differences?

  • FNILX is a mutual fund from Fidelity with $0 in expense fee. VOO, on the other hand, is an ETF (Exchange-traded fund) from Vanguard with an expense ratio of 0.03%.
  • The toal net assets of VOO is 279.84 billion while the total net assets of FNILX is only 5.61 billion.
  • FNILX pays dividends to shareholders once a year. VOO distributes dividends every quarter.
  • Fidelity ZERO Large Cap Index Fund is newer. It was established in 2018. Vanguard 500 Index Fund has been around since 2010.
  • Because VOO is an ETF, it is much more tax efficient in a taxable brokerage account than FNILX.

FNILX vs. VOO: How Are They Similar?

  • FNILX and VOO are essentially the same as they track the S&P 500 Index Fund.
  • Both funds have had similar returns in the last 3 years.

Which is Better? FNILX or VOO?

We asked our community of Fidelity investors and here’s what they have to say about FNILX and VOO.

Let’s find out which fund is a better investment for your portfolio.

Todd A:

If you’re in a taxable account, probably VOO. If not, I don’t see why it matters much, just personal preference. Just realize that they trade differently.

Also note, if you want something identical to VOO, you need to be looking more at FXAIX.

Micah K:

I think you are fine considering it should follow the index pretty closely. Any crazy deviation would be met with pitchforks and torches. That said, it uses its own indexing methods so isn’t bound to follow the Russell 1000 technically.

If it was some flight by night fund company I’d likely be leery but given that its Fidelity, I’d have no issue.

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Diego, a seasoned financial analyst in New York, brings a decade of expertise to guiding financial decisions. As a blogger for UseFidelity.com, he simplifies finance, offering insights on Fidelity Investments. Beyond numbers, he explores NYC's culture and enjoys capturing moments through his photography.

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